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3 years ago

Fixed costs may be relevant in a decision. A. True B. False

Business

1 answer:

zhuklara [117]3 years ago

5 0

Answer:

A. True

Explanation:

Fixed costs can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities etc.

Fixed costs may be relevant in a decision because it affects the amount of future cash-flow of a business entity.

For instance, the high fixed costs are usually a determinant for pricing a product that aren't produced in mass because to break even, businesses would need to rake in more revenues to meet the the increasing (high) fixed costs.

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Most goods and services produced at home a. and most goods and services produced illegally are included in GDP. b. are included

katen-ka-za [31]

Answer:

Most goods and services produced at home are included in GDP while most goods and services produced illegally are excluded from GDP.

Explanation:

The United states Gross Domestic Product is measured including only the production of legal goods and services within a given year. This means that all goods and services for previous year are not taken into account as well of illegal products or services.

7 0

3 years ago

Read 2 more answers

You need $20,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like

Serga [27]

Answer:

The annualy payment for theamortized loan is $6,802.44

Explanation:

First we will find the total loan payment TP for the $20,000 borrowed over the next four years with a annual return of 8%:

TP = $20,000 *(1+8%)^4

TP = $20,000 *(1.08)^4

TP = $20,000 *1.3605 = $27,209.7

The annual payments AN is obtained by dividing the TP into the 4 years:

AN = $27,209.7 / 4 = $6,802.44

4 0

3 years ago

Kamath-Meier Corporation's CFO uses this equation, which was developed by regressing inventories on sales over the past 5 years,

charle [14.2K]

Answer:

$71.5

Explanation:

Inventory forecast is a way of predicting the volume of inventory required to fulfill future orders based on the existing production capacity and other plans relating to production

equation for forecasting inventory = $22 + 0.125 sales

Current sales = $300 million

Annual sales growth rate =32%

sales for next year = 300 + (300*32%)

300 + 96= $396 million

Applying the equation

Inventory = $22 + (0.125*396)

$22 + $49.5 = $71.5 million

7 0

3 years ago

What will a contingency note contain?

kykrilka [37]

Answer:

Contingencies are potential liabilities that might result because of a past event

Explanation:

Reasonably possible losses are only described in the notes and remote contingencies can be omitted entirely from financial statements.

4 0

3 years ago

Southern Industries uses job order costing. The following information was drawn from the Company’s monthly accounting reports: J

Vlad [161]

Answer:

The balance in the Work in Process inventory at the month end is $60

Explanation:

Work in Progress : It is a sum of direct material, direct labor and overhead expense. It shows how much percentage of work is left in the company. The work part left in the company is called work in progress.

For computing the Job 3 work in progress, the calculation part is shown below.

= Direct material + Direct labor + overhead expense

= $30 + $10 + 200% × 10

= $30 + $10 + $20

=$60

Hence, the balance in the Work in Process inventory at the month end is $60

8 0

3 years ago